The Centers for Medicare and Medicaid Services has issued a proposed rule to close a Medicaid tax loophole it said is exploited by some states to benefit illegal immigrants.
States inflate the federal payments and use the money to free up funds for non-Medicaid purposes, according to CMS.
“Some states have exploited these tax loopholes to take money from federal taxpayers and then simultaneously spent ‘state’ money on new benefits for illegal immigrants,” CMS said.
